Disney’s Fiscal Full Year and Q4 2022 Earnings Results Webcast

[dreday3]

Reuters is reporting a hiring freeze and job cuts per a memo CNBC was made aware of.
I'm sure everything is fine right Christine?

Disney plans hiring freeze, job cuts

Chief Executive Bob Chapek sent the memo to Disney's leaders, saying the company is instituting a targeted hiring freeze and anticipates "some small staff reductions" as it looks to manage costs. "While certain macroeconomic factors are out of our control, meeting these goals requires all of us...

finance.yahoo.com

It's happening everywhere unfortunately.

 

[DCBaker]

Article from CNBC -

"Disney plans to institute a targeted hiring freeze as well as some job cuts, according to an internal memo sent to executives.

“We are limiting headcount additions through a targeted hiring freeze,” CEO Bob Chapek said in a memo to division leads sent Friday and obtained by CNBC. “Hiring for the small subset of the most critical, business-driving positions will continue, but all other roles are on hold. Your segment leaders and HR teams have more specific details on how this will apply to your teams.”

Chapek also told executives business travel should be limited to essential trips only. Meetings should be conducted virtually as much as possible, he wrote in the memo.

Disney is also establishing “a cost structure taskforce” to be made up of Chief Financial Officer Christine McCarthy, General Counsel Horacio Gutierrez and Chapek.

“I am fully aware this will be a difficult process for many of you and your teams,” Chapek wrote. “We are going to have to make tough and uncomfortable decisions. But that is just what leadership requires, and I thank you in advance for stepping up during this important time.”

The moves come after Disney reported disappointing quarterly results. Shares of the company fell sharply Wednesday, hitting a new 52-week low, before rebounding later in the week.

McCarthy said during Disney’s earnings call Tuesday that the company was looking for ways to trim costs

“We are actively evaluating our cost base currently, and we’re looking for meaningful efficiencies,” she said. “Some of those are going to provide some near-term savings, and others are going to drive longer-term structural benefits.” Disney’s streaming services lost $1.47 billion last quarter, more than double the unit’s loss from a year prior. McCarthy said losses will improve in 2023, and Chapek has promised streaming will become profitable by the end of 2024."

Disney plans hiring freeze, layoffs and cost cuts, according to a memo from CEO Bob Chapek

"We are limiting headcount additions through a targeted hiring freeze," Disney CEO Bob Chapek said in a memo obtained by CNBC.

www.cnbc.com

 

[Notes from Neverland]

"Unrivaled synergy machine" is the most Chapek sentence.

 

[danv3]

"Unrivaled synergy machine" is the most Chapek sentence.

Followed closely by the absolutely terrifying phrase "cost structure taskforce."

 

[HM Spectre]

What a dizzying mashup of corporate gobbledygook and buzz words.

 

[Cmdr_Crimson]

Meanwhile at Bob's office....

 

[Disney Analyst]

As expected. So many big companies doing the same right now. Recession incoming.

 

[Mmoore29]

As expected. So many big companies doing the same right now. Recession incoming.

Only notable because it's the first non-COVID streamlining done to significant extent since the Eisner era.

This is nothing compared to those days. Chapek certainly isn't my cup of tea, and I'd certainly prefer someone else, but assets are performing well. Just not Wall Street "well," because they have different definitions for that.

There's also no reason Disney would part with the likes of ABC, ESPN or Fox, either, because those are complementary assets just like Pixar, Marvel and Lucasfilm. Employees will go, wholesale assets won't.

 

[EricsBiscuit]

Only notable because it's the first non-COVID streamlining done to significant extent since the Eisner era.

This is nothing compared to those days. Chapek certainly isn't my cup of tea, and I'd certainly prefer someone else, but assets are performing well. Just not Wall Street "well," because they have different definitions for that.

There's also no reason Disney would part with the likes of ABC, ESPN or Fox, either, because those are complementary assets just like Pixar, Marvel and Lucasfilm. Employees will go, wholesale assets won't.

Well? A 1.5 billion loss is not what most would consider “well.”

 

[denyuntilcaught]

Only notable because it's the first non-COVID streamlining done to significant extent since the Eisner era.

This is nothing compared to those days. Chapek certainly isn't my cup of tea, and I'd certainly prefer someone else, but assets are performing well. Just not Wall Street "well," because they have different definitions for that.

There's also no reason Disney would part with the likes of ABC, ESPN or Fox, either, because those are complementary assets just like Pixar, Marvel and Lucasfilm. Employees will go, wholesale assets won't.

Agreed. The word "recession" can be spooky based on our collective experiences from over a decade ago, but things aren't trending to be nearly as severe. Thank goodness.

 

[donsullivan]

Only notable because it's the first non-COVID streamlining done to significant extent since the Eisner era.

This is nothing compared to those days. Chapek certainly isn't my cup of tea, and I'd certainly prefer someone else, but assets are performing well. Just not Wall Street "well," because they have different definitions for that.

There's also no reason Disney would part with the likes of ABC, ESPN or Fox, either, because those are complementary assets just like Pixar, Marvel and Lucasfilm. Employees will go, wholesale assets won't.

They also likely still have a lot of overhead from the Fox acquisition that hasn’t been fully optimized yet as well. There are very few organizations the size of Disney that don’t have opportunities to improve efficiencies and costs by consolidating things like back-end services (IT, Finanace, HR, Benefits, etc..), especially after lots of acquisitions over the Iger era. When the money is pouring in you can get away with not dealing with it but when stuff starts to get tight they’re forced to clean things up.

 

[JoeCamel]

They also likely still have a lot of overhead from the Fox acquisition that hasn’t been fully optimized yet as well. There are very few organizations the size of Disney that don’t have opportunities to improve efficiencies and costs by consolidating things like back-end services (IT, Finanace, HR, Benefits, etc..), especially after lots of acquisitions over the Iger era. When the money is pouring in you can get away with not dealing with it but when stuff starts to get tight they’re forced to clean things up.

I'm sure there are places they could cut but that leaves them short when there is a reason to need excess capacity. Overall it make you less flexible.
Guess Bob didn't learn the pandemic lesson where you toss people aside and expect them to come running back when you need them.....

 

[donsullivan]

I'm sure there are places they could cut but that leaves them short when there is a reason to need excess capacity. Overall it make you less flexible.
Guess Bob didn't learn the pandemic lesson where you toss people aside and expect them to come running back when you need them.....

Keep in mind that while this site focuses on the parks, this was not a parks-centric announcement but one that covers all the divisions of Disney including all of the studios, TV, ESPN, FOX, Parks, Cruise, Retail Stores, merchandise, and more. They took on a lot of people with all those acquisitions over the years and there are redundancy opportunities that need to be realized as things tighten in the economy. This is totally normal and appropriate behavior for a company that has grown like they have over the last 2 decades. There are likely lots and lots of organizational optimization opportunities that once executed will likely benefit the whole organization and be completely invisible from the average outsider.

 

[Tha Realest]

Agreed. The word "recession" can be spooky based on our collective experiences from over a decade ago, but things aren't trending to be nearly as severe. Thank goodness.

Many food essentials have functionally doubled in price over the last year and we’re heading into a winter with what many expect to have higher energy costs, and a bunch of people are losing their jobs already. But sure.

 

[MisterPenguin]

Reuters is reporting a hiring freeze and job cuts per a memo CNBC was made aware of.
I'm sure everything is fine right Christine?

Disney plans hiring freeze, job cuts

Chief Executive Bob Chapek sent the memo to Disney's leaders, saying the company is instituting a targeted hiring freeze and anticipates "some small staff reductions" as it looks to manage costs. "While certain macroeconomic factors are out of our control, meeting these goals requires all of us...

finance.yahoo.com

Well, a hiring freeze isn't nearly as bad as layoffs.

And post-Christmas is usually a time for layoffs in the past.

Tho, this is too late to help their Q1 numbers. Maybe the sound of a nebulous 'freeze' is a bone for the Wall Street crowd.

 

[UNCgolf]

Keep in mind that while this site focuses on the parks, this was not a parks-centric announcement but one that covers all the divisions of Disney including all of the studios, TV, ESPN, FOX, Parks, Cruise, Retail Stores, merchandise, and more. They took on a lot of people with all those acquisitions over the years and there are redundancy opportunities that need to be realized as things tighten in the economy. This is totally normal and appropriate behavior for a company that has grown like they have over the last 2 decades. There are likely lots and lots of organizational optimization opportunities that once executed will likely benefit the whole organization and be completely invisible from the average outsider.

Didn't they already shut down all the retail stores except a handful of flagship locations?

 

[Tha Realest]

Didn't they already shut down all the retail stores except a handful of flagship locations?

Yes. ESPN’s been pretty cut back over time too

 

[BrianLo]

Now whether or not Bob and the board continue on their path or let the street panic them into submission is another matter. But cost cutting while trying to retain and ramp up prices, would seem a poor idea to me.

That aged quickly.

 

[Casper Gutman]

Gee, maybe the entertainment industry and Wall Street going completely insane about streaming and spending like drunken sailors while ignoring every lesson from more then a century of experience wasn’t the greatest idea. Almost makes corporate management and the wizards of Wall Street seem fallible. I’m just so relieved they won’t be the ones bearing the brunt of the hardship from their very predictably destructive choices.

 

[Crunchie9]

Agreed. The word "recession" can be spooky based on our collective experiences from over a decade ago, but things aren't trending to be nearly as severe. Thank goodness.

So you don’t work in supply chain or procurement I see. Can’t wait to see what happens to all these mortgages that are no money down ESG loans.